Apple Is Really Having a Hard Time

Why is Apple Doing So Poorly?

Apple was considered to be the hottest growth stock in the world until this year. In the year 2013, Apple's profit was only 8%. This is staggering in comparison to 2012's 33% growth and 2011's 58% growth. While iPads and Macintosh computers are still selling very well for Apple it is apparent that the company is not doing as well as it was. In fact, it seems that their forward momentum has come to a complete stop. Even though the companies not doing well now, no one thinks that Apple is doomed. The company is worth half a trillion dollars which is more than any other stock. There are a few reasons why Apples pace has been slowed.

The smartphone market has reached saturation

With the saturation of the smartphone market Apple has seen a significant drop in iPhone sales. They sold 59% less than in 2011! Apple has been holding off on reducing the cost of the iPhone for fear that they would cut their profits. It's now clear that the price of the smartphone will need to be reduced to keep consumer spending up.

Apples retail strategy needs some work

Apple retail stores also have noticed a reduction in their sales from 121 million customers to 114 million. While some work definitely needs to be done, Apple's retail stores still have a significant advantage on Sony and Samsung who depend completely on carriers and Best Buy.